General Knowledge - Indian Economy - Discussion

Discussion Forum : Indian Economy - Indian Economy (Q.No. 6)
6.

Devaluation of a currency means

reduction in the value of a currency vis-a-vis major internationally traded currencies
permitting the currency to seek its worth in the international market
fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
Answer: Option
Explanation:
No answer description is available. Let's discuss.
Discussion:
32 comments Page 3 of 4.

Tejaswi said:   1 decade ago
There are two scenarios a) devaluation b) depreciation.

If value of currency was reduced due to market forces i.e. demand and supply its depreciation of currency.

But when the government or other legal authority reduces the value of their currency its called devaluation.

Rukmini said:   1 decade ago
Devaluation of currency means reduction in the value of currency.

Ex. If we are sending Rs.45 for 1$ but now 1$=Rs50, It means we have send more.

It shows value of Rupee is weak as compared with dollar.

Mang Naulak Paite said:   1 decade ago
The Government adopted Devaluation policy in order to attract and encourage import of goods from foreign Countries.

Marina said:   1 decade ago
Devaluation means loss of value of currency as compared to another country.

Rigzin chosdon said:   1 decade ago
The first answer is correct because for eg if we spent RS 48 for 1$ earlier but now we spent RS50 for 1$ that means the value of our Indian money is fall, As spent more our money for 1$.

Manoj said:   1 decade ago
Any body have an idea - How one country devaluate its currency and why they do it?

Please if someone have an answer please reply on.

Nityasundar Manik said:   1 decade ago
When the market value of a currency is reduced ,it is called as devaluation of currency .

Vishal moudgill said:   1 decade ago
In what cicumstances devaluation can be regarded a right measure adopted?

Preeti said:   1 decade ago
Devaluation of a currency means that the market value of that currency has reduced.

Div said:   1 decade ago
That means, fall in the purchasing power of a currency, for instance, in international market, when a doller was equal to rs. 50, and later a dollar equals to rs. 35, that signifies tht the value of rupee has devaluated.


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